how many wazuans who actually run biasharas have been affected by the rate cap, some times the answer we seek is just before us and yet we refuse to see the same.

I am in business and yes, this thing has affected me. Indirectly.

My sales are not what they used to be. Some of my customers without credit facilities, can't buy or settle their accounts. With customers defaulting, you need more working capital. You try disposing some asset, takes ages to sell, since most guys can't access credit. Unlike 2 years ago. Pesa ingepatikana, sasa ni Mungu tu! Hell,my clearing agent is in shit and that has affected me as well.

Which makes me wonder @actuarywahisa, if it's too early to conclude now, when is the right time?

I'd say we relax and give it atleast 2 years after the general elections. The effect of elections would have greatly worn off and there would have been sufficient time for the rest of the players in the financial system to adjust.

If banks are directing more money to GK securities, then it begs a number of questions,1) Is GK borrowing growing at a rate to swallow up the excess funds or are the banks crowding out other investors and driving the rates down?2) If banks are crowding out other debt investors, then where is that 'excess money' from the investors going to?

GK has a significant influence in a few local banks. Is there the possibility of also intervening indirectly to make the cartels in the banking sector behave properly? Of course there is. Create a fund and channel through these banks, for a small fee, money to Credit-worthy SMEs. Will banks in the long run continue to ignore the wider spreads from direct lending in favour of admin fees gained from running the fund (even with loan loss provisions considered)? Banks will eventually have to cave and stop indiscriminate cutting of lending.

GK has tried intervening in the energy sector (where there have been cartels) indirectly through National Oil and also directly through the fuel pricing formular and I would say with good success.

The pain that is currently being faced from the rate cap is because the whole 'money system' has not adjusted. The system is still in shock from the rate cap and has not adjusted.

What I am opposed to greatly is the notion that the only adjustment is reversal of caps (so that cartels take us again?) Banks should continue to pick out good borrowers and lend and then take the rest of the money to GK securities. These shenanigans of punishing everyone with exhorbitant rates because of lending indiscriminately can't continue.

@Obi 1 Kanobi... thank you for posting that link. We will continue to have alternative facts.

There are too many opportunities all around. Open your eyes and maybe you'll spot one

how many wazuans who actually run biasharas have been affected by the rate cap, some times the answer we seek is just before us and yet we refuse to see the same.

I am in business and yes, this thing has affected me. Indirectly.

My sales are not what they used to be. Some of my customers without credit facilities, can't buy or settle their accounts. With customers defaulting, you need more working capital. You try disposing some asset, takes ages to sell, since most guys can't access credit. Unlike 2 years ago. Pesa ingepatikana, sasa ni Mungu tu! Hell,my clearing agent is in shit and that has affected me as well.

Which makes me wonder @actuarywahisa, if it's too early to conclude now, when is the right time?

I'd say we relax and give it atleast 2 years after the general elections. The effect of elections would have greatly worn off and there would have been sufficient time for the rest of the players in the financial system to adjust.

If banks are directing more money to GK securities, then it begs a number of questions,1) Is GK borrowing growing at a rate to swallow up the excess funds or are the banks crowding out other investors and driving the rates down?2) If banks are crowding out other debt investors, then where is that 'excess money' from the investors going to?

GK has a significant influence in a few local banks. Is there the possibility of also intervening indirectly to make the cartels in the banking sector behave properly? Of course there is. Create a fund and channel through these banks, for a small fee, money to Credit-worthy SMEs. Will banks in the long run continue to ignore the wider spreads from direct lending in favour of admin fees gained from running the fund (even with loan loss provisions considered)? Banks will eventually have to cave and stop indiscriminate cutting of lending.

GK has tried intervening in the energy sector (where there have been cartels) indirectly through National Oil and also directly through the fuel pricing formular and I would say with good success.

The pain that is currently being faced from the rate cap is because the whole 'money system' has not adjusted. The system is still in shock from the rate cap and has not adjusted.

What I am opposed to greatly is the notion that the only adjustment is reversal of caps (so that cartels take us again?) Banks should continue to pick out good borrowers and lend and then take the rest of the money to GK securities. These shenanigans of punishing everyone with exhorbitant rates because of lending indiscriminately can't continue.

@Obi 1 Kanobi... thank you for posting that link. We will continue to have alternative facts.

This is a reasonable proposal. We can't assume the law will not work even before fully trying it. What the 'sky is falling' brigade are also omitting is:

1. Some of the credit squeeze, especially in none investment, consumer lending is ultimately good for Kenyans

2. Banks being forced to live within rate cap constraints is already causing innovative changes in the sector; better identification of good borrowers, more use of credit scoring, greater use of technology as well as sector consolidation. These are reforms that, though forced, are ultimately good for the economy.

3. A complete reversal of this law is very unlikely; no government will give in to such naked blackmail by bank cartels. The best they can expect are slight modifications. The days of buccaneer banking in Kenya are gone. Live with it.

"We suffer not from the events in our lives, but from our judgement of them" (Epictetus)

This month the Central Bank of Kenya offered a 10 year Treasury Bond for a total amount of up to Kshs 25 Billion. The total number of bids received was 795 amounting to Kshs 26.31 Billion. The Weighted average rate for successful bids was 15.039%

Coupon 15.039% crazy...even after WHT its good cash

I spoke to the president and his take was that the government shall pull down borrowing rates for itself, which is a good thing.. Expect government to obtain cheap credit. Watch the tbill rate slide down in coming months. We live in good times

Congrats for speaking with @citizen001 but you should have asked him how the "government shall pull down borrowing rates for itself" when in fact we know the rates are market driven (through auctions)

Beg to differ. The auctions are driven mainly by banks.. Now that banks are pushed to the wall on consumer lending, expect government to show a stiff hand

Rates at the auction won't come down anytime soon....that 10 year was just a start.

how many wazuans who actually run biasharas have been affected by the rate cap, some times the answer we seek is just before us and yet we refuse to see the same.

I am in business and yes, this thing has affected me. Indirectly.

My sales are not what they used to be. Some of my customers without credit facilities, can't buy or settle their accounts. With customers defaulting, you need more working capital. You try disposing some asset, takes ages to sell, since most guys can't access credit. Unlike 2 years ago. Pesa ingepatikana, sasa ni Mungu tu! Hell,my clearing agent is in shit and that has affected me as well.

Which makes me wonder @actuarywahisa, if it's too early to conclude now, when is the right time?

I'd say we relax and give it atleast 2 years after the general elections. The effect of elections would have greatly worn off and there would have been sufficient time for the rest of the players in the financial system to adjust.

If banks are directing more money to GK securities, then it begs a number of questions,1) Is GK borrowing growing at a rate to swallow up the excess funds or are the banks crowding out other investors and driving the rates down?2) If banks are crowding out other debt investors, then where is that 'excess money' from the investors going to?

GK has a significant influence in a few local banks. Is there the possibility of also intervening indirectly to make the cartels in the banking sector behave properly? Of course there is. Create a fund and channel through these banks, for a small fee, money to Credit-worthy SMEs. Will banks in the long run continue to ignore the wider spreads from direct lending in favour of admin fees gained from running the fund (even with loan loss provisions considered)? Banks will eventually have to cave and stop indiscriminate cutting of lending.

GK has tried intervening in the energy sector (where there have been cartels) indirectly through National Oil and also directly through the fuel pricing formular and I would say with good success.

The pain that is currently being faced from the rate cap is because the whole 'money system' has not adjusted. The system is still in shock from the rate cap and has not adjusted.

What I am opposed to greatly is the notion that the only adjustment is reversal of caps (so that cartels take us again?) Banks should continue to pick out good borrowers and lend and then take the rest of the money to GK securities. These shenanigans of punishing everyone with exhorbitant rates because of lending indiscriminately can't continue.

@Obi 1 Kanobi... thank you for posting that link. We will continue to have alternative facts.

This is a reasonable proposal. We can't assume the law will not work even before fully trying it. What the 'sky is falling' brigade are also omitting is:

1. Some of the credit squeeze, especially in none investment, consumer lending is ultimately good for Kenyans

2. Banks being forced to live within rate cap constraints is already causing innovative changes in the sector; better identification of good borrowers, more use of credit scoring, greater use of technology as well as sector consolidation. These are reforms that, though forced, are ultimately good for the economy.

3. A complete reversal of this law is very unlikely; no government will give in to such naked blackmail by bank cartels. The best they can expect are slight modifications. The days of buccaneer banking in Kenya are gone. Live with it.

how many wazuans who actually run biasharas have been affected by the rate cap, some times the answer we seek is just before us and yet we refuse to see the same.

I am in business and yes, this thing has affected me. Indirectly.

My sales are not what they used to be. Some of my customers without credit facilities, can't buy or settle their accounts. With customers defaulting, you need more working capital. You try disposing some asset, takes ages to sell, since most guys can't access credit. Unlike 2 years ago. Pesa ingepatikana, sasa ni Mungu tu! Hell,my clearing agent is in shit and that has affected me as well.

Which makes me wonder @actuarywahisa, if it's too early to conclude now, when is the right time?

I'd say we relax and give it atleast 2 years after the general elections. The effect of elections would have greatly worn off and there would have been sufficient time for the rest of the players in the financial system to adjust.

If banks are directing more money to GK securities, then it begs a number of questions,1) Is GK borrowing growing at a rate to swallow up the excess funds or are the banks crowding out other investors and driving the rates down?2) If banks are crowding out other debt investors, then where is that 'excess money' from the investors going to?

GK has a significant influence in a few local banks. Is there the possibility of also intervening indirectly to make the cartels in the banking sector behave properly? Of course there is. Create a fund and channel through these banks, for a small fee, money to Credit-worthy SMEs. Will banks in the long run continue to ignore the wider spreads from direct lending in favour of admin fees gained from running the fund (even with loan loss provisions considered)? Banks will eventually have to cave and stop indiscriminate cutting of lending.

GK has tried intervening in the energy sector (where there have been cartels) indirectly through National Oil and also directly through the fuel pricing formular and I would say with good success.

The pain that is currently being faced from the rate cap is because the whole 'money system' has not adjusted. The system is still in shock from the rate cap and has not adjusted.

What I am opposed to greatly is the notion that the only adjustment is reversal of caps (so that cartels take us again?) Banks should continue to pick out good borrowers and lend and then take the rest of the money to GK securities. These shenanigans of punishing everyone with exhorbitant rates because of lending indiscriminately can't continue.

@Obi 1 Kanobi... thank you for posting that link. We will continue to have alternative facts.

This is a reasonable proposal. We can't assume the law will not work even before fully trying it. What the 'sky is falling' brigade are also omitting is:

1. Some of the credit squeeze, especially in none investment, consumer lending is ultimately good for Kenyans

2. Banks being forced to live within rate cap constraints is already causing innovative changes in the sector; better identification of good borrowers, more use of credit scoring, greater use of technology as well as sector consolidation. These are reforms that, though forced, are ultimately good for the economy.

3. A complete reversal of this law is very unlikely; no government will give in to such naked blackmail by bank cartels. The best they can expect are slight modifications. The days of buccaneer banking in Kenya are gone. Live with it.

The negatives brought out by this rate cap maneno, clearly outweigh the positives. Even the rise in inflation can be tied directly to this action

Sure... the loses by KQ, the increase in the price of unga, the el nino, the delay in the naming of the NASA principal, the traffic jams in Nairobi. Someone should reverse this thing very fast!

@actuary endelea kucheka hadi landlord aweke notice of rent increase.. personally, I will reprice all agreements with my tenants upon maturity of current yearly agreements

@Obiero, so many vacant houses, just look around; increase rent at your own peril; unless it is in informal settlement...

Vacant houses? Where do you live

I see many "to let sign" signs in our estate and on my way to work. I won't disclose where I stay for security purposes

They are many...

@maka does it mean there is a glut or did people move back to the counties. Worse still, could the population be on a decline.. Meanwhile, one of the two men is on record as calling for single digit borrowing. Sad state of affairs http://www.businessdaily...931392-x2tjnc/index.html

[quote=actuarywahisa]Sure... the loses by KQ, the increase in the price of unga, the el nino, the delay in the naming of the NASA principal, the traffic jams in Nairobi. Someone should reverse this thing very fast!

@actuary endelea kucheka hadi landlord aweke notice of rent increase.. personally, I will reprice all agreements with my tenants upon maturity of current yearly agreements

@Obiero, so many vacant houses, just look around; increase rent at your own peril; unless it is in informal settlement...

Vacant houses? Where do you live

I see many "to let sign" signs in our estate and on my way to work. I won't disclose where I stay for security purposes

They are many...

@maka does it mean there is a glut or did people move back to the counties. Worse still, could the population be on a decline.. Meanwhile, one of the two men is on record as calling for single digit borrowing. Sad state of affairs http://www.businessdaily...31392-x2tjnc/index.html[/quote]

I've been enlightening you on this clamour for long only that you don't listen. IMF and World Bank as well as commercial banks were misguided by corporate greed and clandestine moves by Bretton Wood institutions who don't wish well for this country.Law capping interest rates must remain in force as the government continues to press for single digit cost of borrowing!

John 1:46 "Nazareth! Can anything good come from there?" Nathaniel asked ."Come and see," said Philip.

[quote=actuarywahisa]Sure... the loses by KQ, the increase in the price of unga, the el nino, the delay in the naming of the NASA principal, the traffic jams in Nairobi. Someone should reverse this thing very fast!

@actuary endelea kucheka hadi landlord aweke notice of rent increase.. personally, I will reprice all agreements with my tenants upon maturity of current yearly agreements

@Obiero, so many vacant houses, just look around; increase rent at your own peril; unless it is in informal settlement...

Vacant houses? Where do you live

I see many "to let sign" signs in our estate and on my way to work. I won't disclose where I stay for security purposes

They are many...

@maka does it mean there is a glut or did people move back to the counties. Worse still, could the population be on a decline.. Meanwhile, one of the two men is on record as calling for single digit borrowing. Sad state of affairs http://www.businessdaily...31392-x2tjnc/index.html[/quote]

I've been enlightening you on this clamour for long only that you don't listen. IMF and World Bank as well as commercial banks were misguided by corporate greed and clandestine moves by Bretton Wood institutions who don't wish well for this country.Law capping interest rates must remain in force as the government continues to press for single digit cost of borrowing!

If you follow the other thread on Bonds...rates have really dipped....7 year paper now at a yield of 13.1% and expected to drop further...amount rejected was 19Bn so what will banks do when long end bonds reach sub 12.5%?Then you keep on missing picking them up at the auction you will be holding lots of idle cash...

Sure... the loses by KQ, the increase in the price of unga, the el nino, the delay in the naming of the NASA principal, the traffic jams in Nairobi. Someone should reverse this thing very fast!

@actuary endelea kucheka hadi landlord aweke notice of rent increase.. personally, I will reprice all agreements with my tenants upon maturity of current yearly agreements

Wewe increase rent and live in your own houses. I also live within 5kms of the CBD and there are many houses and many being built almost overnight! Already most of the rents in these areas were exhorbitant. That's why many apartments were germinating faster than beans.

Obiero, there are no two ways about it. Banks must live in the new reality.

There are too many opportunities all around. Open your eyes and maybe you'll spot one

Sure... the loses by KQ, the increase in the price of unga, the el nino, the delay in the naming of the NASA principal, the traffic jams in Nairobi. Someone should reverse this thing very fast!

@actuary endelea kucheka hadi landlord aweke notice of rent increase.. personally, I will reprice all agreements with my tenants upon maturity of current yearly agreements

Wewe increase rent and live in your own houses. I also live within 5kms of the CBD and there are many houses and many being built almost overnight! Already most of the rents in these areas were exhorbitant. That's why many apartments were germinating faster than beans.

Obiero, there are no two ways about it. Banks must live in the new reality.

@actuarywahisa.. Its true. Banks must learn to live in the new normal, but will Kenya survive.. This capping thing when analysed inside-out, happens to be even more negative than we earlier imagined. The country could race towards a recession

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